HC Deb 21 July 2000 vol 354 cc372-3W
Mr. Hood

To ask the Minister of Agriculture, Fisheries and Food what the outcome was of the Agriculture Council held in Brussels on 18 July; and if he will make a statement. [131935]

Mr. Nick Brown

I represented the UK at the Agriculture Council held in Brussels on 17 July, accompanied by my right hon. Friend the Minister of State and by Christine Gwyther, Agriculture Secretary in the National Assembly for Wales.

The council unanimously agreed Commission proposals on CAP prices and aids for the 2000–01 marketing year, reform of the flax and hemp regime and changes to the EU school milk scheme. The flax and hemp reforms will increase the market-orientation of this sector and, following pressure from the UK and others, the agreement includes significantly higher processing aid for the types of flax and hemp produced in this country.

The Council's changes to the school milk scheme represent a major improvement over the Commission's proposal. Following rejection of their proposals originally to abandon this scheme and subsequently for 50 per cent. co-financing, the Council has limited the changed to a reduction of aid from 95 per cent. to 75 per cent. of the milk target price and provision for the dairy sector to contribute to the scheme. Local authorities which wish to do so will thus continue to have the facility to apply the scheme.

The Council also unanimously adopted amendments made by the European Parliament to its common position on Beef Labelling. This will enable the Regulation to come into force on 1 September as planned.

I particularly welcomed the European Parliament's amendments removing the obligation to label beef by category of animal which I know had given rise to considerable concern to our industry.

Under other business I supported other colleagues pressing Commissioner Fischler to reopen access to export refunds for processed foodstuffs provided this could be achieved without breaching budget discipline.